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The EU and the UK: A door closes, another opens

By Josep Borrell and Michel Barnier

ON JAN. 31, the United Kingdom left the European Union. We lost a member of our family. It was a sad moment for us, for European citizens — and, indeed, for many British citizens.

Nevertheless, we have always respected the sovereign decision of 52% of the British electorate, and we now look forward to starting a new chapter in our relations.

Emotions aside, Feb. 1 turned out to be historic but also undramatic. This is largely thanks to the Withdrawal Agreement that we negotiated with the UK, which enabled us to secure “an orderly Brexit.” One that — at least for now — minimises disruption for our citizens, businesses, public administrations — as well as for our international partners.

Under this agreement, the EU and the UK agreed on a transition period, until the end of 2020 at least, during which the UK will continue to participate in the EU’s Customs Union and Single Market, and to apply EU law, even if it is no longer a Member State. During this period, the UK will also continue to abide by the international agreements of the EU, as we made clear in a note verbale to our international partners.

So, with the transition period in place, there is a degree of continuity. This was not easy given the magnitude of the task. By leaving the Union, the UK automatically, mechanically, legally, leaves hundreds of international agreements concluded by or on behalf of the Union, to the benefit of its Member States, on topics as different as trade, aviation, fisheries or civil nuclear cooperation.

We now have to build a new partnership between the EU and the UK. That work will start in a few weeks, as soon as the EU27 have approved the negotiating mandate proposed by the European Commission, setting out our terms and ambitions for achieving the closest possible partnership with a country which will remain our ally, our partner and our friend.

The EU and the UK are bound by history, by geography, culture, shared values and principles and a strong belief in rules-based multilateralism. Our future partnership will reflect these links and shared beliefs. We want to go well beyond trade and keep working together on security and defense, areas where the UK has experiences and assets that are best used as part of a common effort. In a world of big challenges and change, of turmoil and transition, we must consult each other and cooperate, bilaterally and in key regional and global fora, such as the United Nations, the World Trade Organization, NATO or the G20.

It is perhaps a cliché but the basic truth is that today’s global challenges — from climate change, to cybercrime, terrorism or inequality — require collective responses. The more the UK is able to work in lockstep with the EU and together with partners around the world, the greater our chances of addressing these challenges effectively.

At the very core of the EU project is the idea that we are stronger together; that pooling our resources and initiatives is the best way of achieving common goals. Brexit does not change this, and we will continue to take this project forward as 27.

Together, the 27 Member States will continue to form a single market of 450 million citizens and more than 20 million businesses.

Together, we remain the largest trading bloc in the world.

Together, at 27, we are still the world’s largest development aid donor.

Our partners can be sure that we will stay true to an ambitious, outward-looking agenda — be it on trade and investment, on climate action and digital, on connectivity, on security and counter-terrorism, on human rights and democracy, or on defence and foreign policy.

We will continue to live up to our commitments. We will continue to stand by the agreements that link us to our international partners such as the Partnership and Cooperation Agreement with the Philippines and we will continue to develop multilateral cooperation frameworks around the world.

The European Union will continue to be a partner you can trust. A steadfast defender of rules-based multilateralism, working with our partners to make the world more secure and fair.

 

Josep Borrell is the High Representative/Vice-President of the European Commission, while Michel Barnier is the Head of Task Force for the Relations with United Kingdom.

Resilience and out-of-process events

By Cliff Eala

I HAD lunch with Gina. She was diagnosed 10 years ago at age 40. Breast cancer. Stage 3c, meaning advanced. Nineteen of the 25 lymph nodes the doctors found were malignant. She underwent surgery, six sessions of chemo, and 33 radiation sessions. Each chemo session left her sick and nauseous for a week. It left a metallic taste in her mouth, and she could not eat anything.

“What was the toughest part of all this?,” I asked. “The day I found out!” she replied. “My heart fell to the floor. I cried. And cried some more. Then, it stopped there. I told myself. I already have cancer. I am not going to make it worse by feeling sorry for myself. I am going to do this. I am going to get myself well.” That is resilience.

Resilience is the ability to deal with, recover, and grow from adversity. In a corporate setting, it is the ability to deal with, recover, and grow from “out-of-process” events. Any organization has out-of-process events. These are events for which a process has not been defined. For example, an overturned bus blocking delivery vans can mean no food to sell at a fast-food outlet. This is an out-of-process event or, in our definition of resilience, the “adversity.” Resilient people, because of the way they think and behave, approach the problem to solve it. The non-resilient ones, withdraw from the problem to avoid it. Company growth comes from those who habitually view out-of-process events as opportunities, and proactively step forward to solve them.

There are several drivers of resilience. One model for workplace resilience identifies four component skills: confidence, adaptability, purposefulness, and social support (Robertson, 2015). The US Army and the University of Pennsylvania’s Positive Psychology Center have jointly designed a resilience model for the US Army Master Resilience Trainer course. This 10-day program teaches resilience skills for soldiers. The program develops six core competencies to build resilience and prepares one for adversity (Reivich and Seligman, 2011). These competencies work not only for soldiers preparing for war but also for you and me going through work and life’s troughs. The competencies are:

“(a.) self-awareness — identifying one’s thoughts, emotions, and behaviors, and patterns in each that are counterproductive;

(b.) self-regulation — the ability to regulate impulses, thinking, emotions, and behaviors to achieve goals, as well as the willingness and ability to express emotions;

(c.) optimism — noticing the goodness in self and others, identifying what is controllable, remaining wedded to reality, and challenging counterproductive beliefs;

(d.) mental agility — thinking flexibly and accurately, perspective taking, and the willingness to try new strategies;

(e.) character strengths — identifying the top strengths in oneself and others, relying on one’s strengths to overcome challenges and meet goals, and cultivating a strength approach in one’s unit; and,

(f.) connection — building strong relationships through positive and effective communication, empathy, willingness to ask for help, and willingness to offer help” (Reivich and Seligman, 2011).

I define a resilience model with five elements. This model identifies the factors that enhance personal resilience:

• Purposefulness — having a purpose worth pursuing makes you resilient.

• Optimism — believing in your ability to bring about a better future outcome makes you resilient.

• Flexibility — being able to assess challenges from different perspectives, find opportunities in them, and solve them creatively makes you resilient.

• Self-control — being able to regulate thoughts, feelings, and behavior makes you resilient.

• Social support — being able to rely on support from others makes you resilient.

Resilience is a trait that uniquely sets us apart from robots and their artificial intelligence algorithms. Resilient people are the ones who push an enterprise forward to deliver and grow. Organizations should, therefore, invest in resilience-building programs. Resilience is good for people, and it is good for business.

 

Cliff Eala is founder and CEO at energy efficiency firm Synerbyte Ltd., and author of the book Sh*tty Places & Selfish People: 7 Rules of Engagement.

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cliff.eala@synerbyte.com

Meet the Silicon Valley-based Filipino founder fighting to end cancer

 

When Aldo Carrascoso founded InterVenn Biosciences, his San Francisco-based healthtech company innovating around early cancer detection, he did it with one mission in mind: to build a world where no one is ever blindsided by disease.

It’s a mission everyone at InterVenn has imbibed, from the scientists running InterVenn’s state of the art lab to the janitors keeping their offices in order.

Before he was the co-founder and CEO of InterVenn, this Filipino entrepreneur was the founder and CTO of Veem (formerly Align Commerce), a cross-border payment platform that utilized blockchain years before anyone ever even heard of Bitcoin. According to Crunchbase, Veem boasts a lineup of investors including “Kleiner, Perkins, Caufield, Byers (the same venture capital responsible for Google, Twitter, Amazon, Uber, Waze, Slack and SnapChat among others), Google Ventures, Softbank Ventures, National Australian Bank, Silicon Valley Bank Ventures, Recruit Strategic Partners, and NYCA Investment Partnership LP (led by Hans Morris, former President of Visa and Max Levchin, founding CTO of PayPal).”

[WATCH: Aldo Carrascoso on how Filipino startups can scale beyond the Philippines.]

His latest venture, InterVenn, utilizes next generation glycomics, instrumentation, and deep machine learning to change the way people diagnose cancer, all in the hopes of radically furthering research towards curing it.

Aldo credits much of his company’s ongoing success to the brilliance of his team. His only role, he claims, is empowering them with resources and love–a word he says he likes to use a lot. In this video, Aldo shares advice for founders looking to build startups that truly make a difference and why Filipino values are key to helping his companies thrive.

This fireside chat was organized by StartUp Village as part of their ENGAGE: Silicon Valley Immersion program. ENGAGE brings Philippine startups, entrepreneurs, and corporate executives to the global epicenters of innovation.

If you’re interested in joining the next leg of the program, slated for March 2 to 6, 2020, you can find out more at the ENGAGE: Silicon Valley Immersion program page.

Adiwang brings heat in Manila debut; Iniong wins

By Michael Angelo S. Murillo, Senior Reporter

PROMISED to bring the heat in his Manila debut for ONE Championship, Filipino Lito “Thunder Kid” Adiwang delivered on it, emerging on top in the opening round over Thai Pongsiri Mitsatit in their strawweight fight at “ONE: Fire & Fury” on Friday at the Mall of Asia Arena.

Fighting in his second outing in the main draw of Asia’s largest sports media property, Team Lakay’s Adiwang (11-2) did not waste much time, jumping on his opponent early on en route to the submission victory over Mitsatit by way of kimura.

Earlier, women’s strawweight fighter Gina “Conviction” Iniong scored a unanimous decision win over Asha Roka of India.

After a brief feeling-out period, Adiwang got his attack going, throwing a flying knee and following it up with a barrage of strikes.

He managed to force the Thai to the cage and eventually to the ground where he bombarded Mitsatit with elbows and punches.

Mitsatit survived Adiwang’s onslaught and forced things to a stand-up anew before taking the Filipino to the ground.

The two fighters angled on the mat, giving each other a lock.

Adiwang though found the leverage he wanted and went for the roll that got him on top.

From there he executed a kimura and moments later Mitsatit made the tap, forcing the referee to stop the fight at the 3:02 mark of the first round.

Adiwang topped the ONE Warrior Series last year to earn a contract with ONE Championship.

He had a winning debut in ONE’s main draw in October, defeating former Pancrase champion Senzo Ikeda at the landmark “ONE: Century” event in Japan.

“I credit maturity for this win,” said Adiwang who shared he has grown a lot as a fighter in recent years.

He went on to say that he loved fighting in Manila and is looking forward to putting up impressive performances for the Filipino fans in the future.

Meanwhile, Iniong, also of Team Lakay, notched back-to-back wins in ONE with a unanimous decision victory over Roka.

The fighters had their moments throughout the three rounds but Iniong proved to have more to give as the fight wore on.

The win was in follow-up to Iniong’s ONE victory in February last year where she won by split decision over Hayatun Jihin Radzuan of Malaysia.

It also came on the heels of her successful outing in the recent Southeast Asian Games held here in December where she produced a gold medal in the women’s 55-kg kick light category of the kickboxing event.

BSP says January inflation likely 2.5% to 3.3%

INFLATION may have settled at 2.5% to 3.3% in January, driven by rising food and liquefied petroleum gas prices and a higher tax on tobacco products, according to the central bank.

“Moving forward, the BSP will continue to monitor evolving price trends to ensure that the monetary policy stance remains consistent with the mandate of maintaining price stability conducive to economic growth,” Bangko Sentral ng Pilipinas’ Department of Economic Research said in a statement on Friday.

Inflation could have been tempered by lower electricity rates in Metro Manila and rollbacks in fuel prices, it added.

Inflation stood at 2.5% in December and 4.4% in January 2019.

President Rodrigo R. Duterte signed into law a new sing tax measure that raised taxes on electronic cigarettes and alcohol products.

The measure increased the ad valorem tax to 22% from 20% for net retail prices of distilled spirits. From a specific tax of P23.40 per proof liter in 2019, rates have been adjusted to P42 per proof liter at the start of the year.

This will continue to increase to P47 per proof liter in 2021, P52 in 2022, P59 in 2023 and P66 in 2024.

The law also imposes a P50 per liter levy on all types of wines. The tax used to vary according to wine type, price and alcohol content.

The levy will increase by 6% every year starting Jan. on 1.

The tax on heated tobacco products was raised to P25 per pack and will continue to increase by 2.50 centavos yearly until 2023.

The Department of Energy earlier said a new set of excise taxes on petroleum products would be enforced as as part of the third and final tranche of the Tax Reform for Acceleration and Inclusion law.

The law’s final tranche allows for a P1 per kilo additional excise tax for household liquefied petroleum gas.

The Energy department has said 48 of 67 LPG depots have started imposing the additional taxes as of Jan. 24. Four out of 297 LPG refilling plants have also enforced the additional excise taxes since Jan. 10.

The Philippine Statistics Authority is set to release January inflation data on Feb. 5. — Luz Wendy T. Noble

Economy may suffer from prolonged coronavirus outbreak

PHILIPPINE economic growth is likely to take a hit from a global coronavirus outbreak, with trade and tourism bearing the brunt, according to a Union Bank of the Philippines, Inc. note.

The country’s gross domestic product (GDP) growth could decline by 0.3% to 0.8% this year “if and when the outbreak lasts at least six months,” the lender’s Economic Research Unit said in a note emailed on Friday.

The estimate is based on the severe acute respiratory syndrome (SARS) outbreak in 2002 to 2003 when growth rates of Southeast Asian economies declined by an average of 0.5% when the situation lasted for seven months, the bank said.

The Philippine economy grew by 5.9% last year, its slowest pace in eight years and missing the government’s minimum goal of 6%.

“If this outbreak delivers a severe, but temporary impact, like SARS, the economic impact on the Philippines is very likely to be very minimal,” according to the note. “It may take time for the movement of people to return to normal, though.”

Philippine industries likely to be hit are tourism, which is part of the retail and service sector, and trade given that China is one of the country’s major trading partners.

More than 1.5 million Chinese visited the Philippines in the 11 months through October, making China its No. 2 tourism market after South Korea, according to data from the Tourism department.

Tourism accounted for 12.7% of Philippine GDP in 2018, according to government data.

“The Philippines may stand to lose a minimum of $126 million worth of foreign tourist spending this 2020 as the coronavirus scare continues to sow fear in the short term,” it said.

Foreign tourists spend an average $84 a day, the lender said, citing 2010 data from the Philippine Statistics Authority.

Meanwhile, the coronavirus scare could “slow a steady and burgeoning source of foreign exchange” from tourists.

“The more likely and direct impact on the economy will be on the consumption front as global travel is expected to slow altogether,” ING Bank-NV Manila senior economist Nicholas Antonio T. Mapa said in a separate note.

Trade, specifically Philippine exports may “continue to be flattish amidst this worldwide health emergency”, according to the Union Bank note.

“With the US-China trade issue partly settled with the so-called phase 1 trade deal and the global economy still to see a turning point signaling a clear growth recovery, export performance growth many continue to be sluggish this Q1 2020,” it said. — Luz Wendy T. Noble

WHO declares global health emergency

THE World Health Organization (WHO) has declared a global health emergency as a new deadly strain of coronavirus that came from China spread to at least 18 other countries, including the Philippines.

“Our greatest concern is the potential for the virus to spread to countries with weaker health systems, and which are ill-prepared to deal with it,” WHO Director-General Tedros Adhanom Ghebreyesus said in a speech uploaded on the WHO website.

At least 170 people have died in China and almost 8,000 have been infected, 99% of them in China, according to the WHO.

There were 82 cases in 18 countries. Eight of these were human-to-human transmissions in Germany, Japan, Vietnam and the US.

Meanwhile, the National Health Commission of China said in a statement the number of confirmed cases in mainland China rose to 9,692 as of midnight of Jan. 30 with 213 deaths.

The commission also said there were 4,812 new suspected cases as of Jan. 30, bringing the total to 15,238.

Mr. Ghebreyesus said countries with weaker health systems must be supported, while all countries should “work together in a spirit of solidarity and cooperation.”

WHO also said health authorities must quicken the development of vaccines, while combating misinformation, reviewing preparedness plans and sharing data and knowledge.

The agency said there was no reason to enforce policies that “unnecessarily interfere with international travel and trade.”

The Philippines had 31 people under investigation for the deadly coronavirus strain. A Chinese national from Wuhan City was the first confirmed case of the new virus in the Philippines.

PRECAUTIONS
The Land Transportation Franchising and Regulatory Board has issued a circular mandating all public utility vehicle drivers and conductors to wear face masks at all times.

The Maritime Industry Authority also said it had advised ship owners and operators to take measures to monitor the virus.

Meanwhile, President Rodrigo R. Duterte had agreed to impose a temporary travel ban on foreign nationals from Hubei province, Senator Christopher Lawrence T. Go, his former aide, said in a statement.

Malacañang should appoint Health Secretary Francisco T. Duque III as the official spokesman on matters related to the new virus to avoid the spread of fake news, Senator Nancy S. Binay said in a statement.

“I appeal to the President to appoint only one official spokesperson and only one voice who will regularly update the public of the latest developments,” she said.

The Foreign Affairs department was also ready to take Filipinos in the Chinese province home.

“Filipinos in Wuhan City and the rest of Hubei province will be afforded priority in the first batch of repatriates,” it said in a separate statement late Thursday.

House Speaker Alan Peter S. Cayetano reiterated that the Health department should start using its funds to to prevent the spread of the novel coronavirus/

“We now urge the Department of Health to use their available funds to implement the necessary contingency measures to ensure that all our medical facilities and hospitals are equipped and ready to attend to the needs of the Filipino people,” he said in a Facebook post. — Vann Marlo M. Villegas, Arjay L. Balinbin, Charmaine A. Tadalan and Genshen L. Espedido

House bloc seeks end to ‘onerous’ military deals

A COALITION of 12 party lists at the House of Representatives filed a resolution on Friday calling for an end to several “onerous” military agreements between the Philippines and US.

The Makabayan bloc said the Philippines should terminate its visiting forces agreement, Enhanced Defense Cooperation Agreement and Mutual Defense Treaty with the US.

Ending these military deals would “bar any future plans” to give the Americans access to Philippine military bases, according to the resolution.

The political bloc also said ending these agreement would allow the country to assert its “sovereignty and protect Filipinos and oppose US attempts to use the Philippines for its political and economic interests in Asia.”

President Rodrigo R. Duterte has ordered government lawyers to study a plan to end the VFA. He asked the US government last week to reverse its decision to cancel Mr. de la Rosa’s US visa, giving it a month-long ultimatum. — Genshen L. Espedido

3 fugitives from justice to be deported

THE Bureau of Immigration will deport three fugitives from China and the US for various crimes, it said in a statement on Friday.

Immigration Commissioner Jaime H. Morente said the three foreigners, one Chinese and two Americans, were arrested in separate operations.

Fugitive Search Unit Chief Bobby R. Raquepo said a Chinese national who was a suspect in a credit card fraud scheme was arrested in Parañaque City.

An American was also arrested in Cagayan de Oro City on Jan. 16 for a homicide case in the US.

Another US citizen charged with molesting a child was arrested in Negros Oriental on Jan. 21, the agency said.

Mr. Morente said their passports had been cancelled by their respective countries. The three were detained in a Taguig City jail and were awaiting their deportation. — Vann Marlo M. Villegas

Filipino teen tennis star Alex Eala, Indon win Aussie Open juniors doubles title

Filipino juniors tennis player Alex Eala partnered with Priska Nugroho of Indonesia to capture the 2020 Australian Open Juniors women’s doubles title on Friday.

By Michael Angelo S. Murillo, Senior Reporter

FILIPINO tennis sensation Alex Eala captured the 2020 Australian Open Juniors women’s doubles title, partnering with Priska Nugroho of Indonesia to beat the duo of Matilda Mutavdzic and Ziva Falkner, 6-1, 6-2, in the finals on Friday.

Saw their individual push come to an end early in the week, Eala and Nugroho turned their focus to the doubles title and succeeded in dominating their opponents.

Eala, a Globe Telecom ambassador, made history with the title conquest, becoming the first Filipina to win a grand slam title be it in juniors or seniors play.

It was a culimination of an impressive roll for the doubles tandem where they more than proved that they belonged in the tournanent.

Entering 2020, Eala, 14, a product of the Rafa Nadal Academy, was on a roll.

She finished the 2018 season ranked 248th in the world, before jumping to a then-career best 13th spot last October.

Eala then pressed further to the top 10 after winning the title in the Orange Bowl doubles tournament in Florida last December to come within a spot in breaking the elite Top 10 best players of the world.

87 infrastructure project approvals better than record of past 3 gov’ts — Pernia

THE government has given the green light for 87 infrastructure projects to proceed so far, a marked improvement from the record of previous administrations, its chief economic planner said.

Socioeconomic Planning Secretary Ernesto M. Pernia said a total of 87 projects obtained final approval from the National Economic and Development Authority (NEDA) Board, which President Rodrigo R. Duterte chairs, since the administration took over in 2016.

The NEDA Board is the highest policy-making body for approving major projects, after they go through various stages of evaluation for economic impact and technical and financial feasibility.

Mr. Pernia said the total includes both big ticket projects under the revised 100-project infrastructure program as well as small ones that are not on the list.

“We have already approved 87 projects in a matter of three years and a half, that’s a pretty good record compared with previous three administrations together… that is something that we can be proud of,” Mr. Pernia said at the open forum of an economic briefing conducted by NordCham Philippines on Friday.

On Wednesday, the NEDA Board approved eight new infrastructure projects with a total cost of P547.6 billion, including th P57.07-billion Metro Rail Transit Line 4 (MRT-4) and the P8.51-billion EDSA (Epifanio de los Santos Avenue) Greenways project.

However, Mr. Pernia said not all approved projects will be completed before the administration steps down in 2022, but added that construction starts are likely to commit the next government to implement them.

The Finance department had said the government will leave P1.4 trillion worth of infrastructure projects in the pipeline for its successor administration.

“I think it would be embarassing for the next administration to not be as effective and as efficient in generating, approving projects as well as in implementing them, if they cannot even match or nearly match what we have done,” Mr. Pernia added. — Beatrice M. Laforga

Fitch Solutions sees construction-sector growth accelerating

THE construction industry is expected to grow 9.4% this year, remaining one of the fastest-growing markets in Southest Asia, according Fitch Solutions Macro Research.

In a note issued Friday, Fitch Solutions, the research arm of Fitch Group, projected the sector to grow faster than the 2019 rate of 7.7%, “driven by both public spending and foreign assistance and investments.”

Fitch Solutions described the construction sector as a “regional outperformer” lagging only the construction sectors of Cambodia, Myanmar and Laos.

“This (9.4% growth in 2020) means that the country will remain one of the fastest-growing construction markets in the region, only behind the frontier markets such as Cambodia, Myanmar and Laos, all of which have smaller construction markets compared to the Philippines,” it said.

According to its Key Projects Database of the entire infrastructure sector, rail projects “are expected to spearhead growth” this year with $33.859 billion worth of projects that are in the planning and construction stages.

“While not all projects in the pipeline are expected to break ground and contribute to the country’s construction-sector GDP (gross domestic product) this year, we highlight the rail sector as an important contributor of short-term construction-sector growth, with several projects in the National Capital Region progressing well,” it said.

Fitch Solutions also noted that the government’s spending plan for the construction sector this year will serve as a growth driver, supported by the increase in allocations for the two major infrastructure implementing agencies.

Out of this year’s P4.1 trillion spending plan, the Department of Public Works and Highways (DPWH) has an allocation of P534.3 billion (up 15% year-on-year) while the Department of Transportation (DOTr) has P147 billion (up 112% year-on-year).

It also expects the DPWH’s budget to benefit the road and water sectors while the DoTr is expected to use a large chunk of its bugdet to fund rail projects.

The Education department’s P36 billion allocation can also be used to build more school buildings and classrooms and rehabilitate school facilities, it said.

“Agriculture for the construction of farm-to-market roads to facilitate the flow of goods between production areas and demand centers, will provide a further boost to overall construction activity within the country in the coming years,” it added.

The report said the government’s “Build, Build, Build” program will continue to boost investment in the construction sector but the actual execution of projects “will have a heavy influence on growth of the sector over the short term.”

“Build, Build, Build’ will remain a key policy supporting growth of the infrastructure sector in the Phillippines over the short-term. We maintain an optimistic view on the execution of BBB-related projects, with the power and rail sectors expected to outperform,” it said.

However, Fitch Solutions flagged possible risks to the positive outlook, such as the government’s ability to attract sufficient foreign direct investment (FDI) and official development assistance (ODA) as well as quality bidders to implement the projects.

“Failure to do so will once again result in a lack of progress and will be a downside risk for construction sector growth. This is especially so after the government revoked water concession extension agreements with two private sector players in December 2019, highlighting regulatory risks associated with contracts agreed between the public and private sectors, undermining investor confidence,” it said. — Beatrice M. Laforga